Goal: Repatriate Off-shored Jobs
As long as there is a corporate income tax and an IRS, off-shored jobs will remain offshore. Changing the progressiveness of the tax brackets in either direction will make no difference.
A flat income tax, that does not contain a corporate tax or payroll tax component, will help to prevent more jobs being shipped offshore. But since an income tax will still require the continuation of IRS to oversee compliance, most companies that have already sent jobs offshore will be hesitant to move any of their production back to the USA, especially considering the fact that history shows us that a flat income tax will not stay flat for long.
In this regard, the income tax components of 9-9-9 will more than negate the positive effects of the sales tax component of that scheme. In fact, the added complexity of the 9-9-9 scheme may actually encourage more offshoring of jobs.
On the other hand, the FairTax not only eliminates the corporate income tax, it eliminates the IRS, which are two of the major factors driving the offshoring of jobs. Removing those two factors alone, will turn around the offshoring of jobs. Then add in the fact that the FairTax contains no tax on savings and no payroll tax and the USA will become a tremendous jobs magnet. Corporations that have sent production offshore will rush to bring those jobs back to our shores, so they can build their products where there is no corporate income tax and no IRS.
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